EDITORIAL: Smart investors know when deal is too good to be true

That adage was never more appropriate than in the case of the Iron Station man accused of running a Ponzi scheme out of Cherryville and raking in more than a million dollars.

According to the U.S. Attorney’s Office, 52-year-old C. David Wright convinced people to put their money in something he called “Commodity Investment Group.”

The company supposedly invested in hedge funds, commodities, even Quick Trip stores like the ones being built in Gastonia.

Wright, prosecutors say, claimed to manage the investment group which was based in Cherryville. Out-of-state “investors” mailed money to Wright’s Cherryville Post Office box while local people met him in a Cherryville parking lot to turn over their money.

In return, Wright promised a whopping payback of up to 30 percent.

What a deal!

If only making so much money were so easy.

The case brings to mind the need for constant vigilance when it comes to investing any amount of money, a small sum or a chunk.

Unreasonable returns are just that – unreasonable — and most unlikely to happen. Sure, people win big in the lottery, but more people lose. Likewise, there are investments that pay a sweet return, but ask any reputable financial advisor and you’ll get the sound advice that such “lucky” returns aren’t the norm.

And we’d be willing to bet that a reputable financial advisor won’t ask you to meet to turn over your money in a parking lot.

Common sense is a good yardstick upon which to measure the probably of your “investment” paying off as promised.

Prosecutors say Wright, a former teacher, has agreed to a plea deal that includes paying restitution to the people he snookered. How much will be determined when he goes to court. He also faces a fine of $250,000 and up to 20 years in prison.

With less than $1,000 left in the “investment” account he “managed,” those “investors” shouldn’t bet on seeing all of their money returned.

There are lots of scams that come and go, many targeting the elderly. If you or someone you know hears about a deal that sounds too good to be true, remember the adage and pass it up.